Big questions remain after Husky's drops plan to receive Meg energy



[ad_1]

Husky Energy Inc. The desire to snap up the Energy Energy Corp. has been disappointing in recent weeks, the result of a recalculation of its financial prospects.

Husky shocked Investors Thursday when it received enough support from Mega shareholders to extend its $ 2.5 billion bid but not elected.

MEG chief executive Deputy Evans has refused to talk to Husky CEO Rob Peabody earlier this month, when the term was upgraded, but no response, John Rogers Vice President said Friday. It was one of three times since its launch in late September that the two sides are in contact.

History below advertisement

"We approached them, and they never got back to us," Mr. Rogers said.

In his statement, Donkey said the lack of support for MEG's board was one of the reasons for his decision to pay.

The development has fueled speculation about what happened behind those scenes. Big questions remain: what shareholders do not mind when there are no other beds on the table after 105 days? And why did Husky decide to throw in the towel when it could have been?

Shares in both companies fell in the Toronto Stock Exchange on Friday as investors digested the recalibrated prospects. Husky fell 4 per cent and Mig almost 3 per cent after tumbling 36 percent a day.

As recently as January 7, the majority-owned company controlled by Hong Kong billionaire Li Qa-shing family issued a reminder to mega shareholders too soft. It received less than two-thirds of the Mega Shares, which would have been divisible, but more than 50 percent – enough to abandon.

In his statement on Thursday, Husky expressed a change in calculus when Alberta Premier Rachel Notice imposed an almost 9 percent cut on Oil Production in the province to deal with massive glut caused by insufficient pipeline capacity. Oil and oil refineries, Hussein, is highly critical of the move, so it's great to avoid the market.

However, the temporary cats were announced in late November, and the Canadian heavyweight discount is almost immediate. To be sure, the price expires in about a decade this week, but asset oil sands, located south of Fort McMurray, Alta, are expected to work for many years.

History below advertisement

Husky spokesman flour dwual displays any notion that some undiscovered factor – such as a disagreement among the directors of the company on the forward – played in its decision about Meg. "The reasons we decided not to extend are just as we laid out in our news release. Over the duration of the offer, MEG's board of directors against our offer and urged shareholders to reject this offer right up to The deadline, "he said in an e-mail.

Two of the largest shareholders in China, Knook Ltd and Boston-based high-end capital management, have not revealed whether they are bidding for that bid. Portfolio managers have said that they were surprised that no shareholder was hurting, given the outlook for Mega's shares to tumble if it wasn't in play.

Husky shares Surged after announcing it was going away from the bid, indicating investors were relieved that his financial position would not deteriorate as it integrated a major acquisition. The feeling was echoed by Moody's Investors Service, who warned that the company would have beaten its production and refined its capacity.

"Leverage metric in Husky in 2019 would have been weakened by acquiring MiG," the bond-based agency said. "The integration of MIG would also have created a gap in HUSKI's downstream North America integration and heavy oil production, taking nearly two years to catch up with the close full integration of Husky's benefits today.

Earlier this month, the company said it was a sale of its Canadian gasoline retail network, along with a small British Columbia refinery, which, according to some analysts, estimates estimates about $ 1 billion.

For its part, it said it plans to issue an update of its plans for 2019 soon. The company "dodged a bullet" when it became clear it would lead to a standalone company, said Greg Pardi, an analyst at RBC Dominance Securities. He upgraded the stock to "Outperform" based on prospects for increasing production and impending additions to his major US shipments. There. Pipeline to texas

[ad_2]
Source link